CarMax
stock rose sharply after the used-car retailer reported a mixed quarter, and resumed share buybacks.
For its fiscal third quarter ended Nov. 30, CarMax posted earnings of 52 cents a share, topping Wall Street’s call for 38 cents, according to FactSet. A year ago, the company earned 24 cents a share.
Revenue of $6.15 billion missed the $6.29 billion analysts had forecast. Total retail used-unit sales declined 2.9% from a year earlier, while comparable-store used-unit sales dropped 4.1%.
CarMax also resumed its share-repurchase program after pausing it a year ago. The company had $2.41 billion remaining in its outstanding authorization as of Nov. 30 to buy back shares. CarMax repurchased 648,500 shares for $41.9 million in the quarter, an average share price of about $64.61.
“Our third-quarter performance reflects the continued efforts of the team that have resulted in several quarters of sequential improvements across key components of our business, despite the persistent widespread pressures in the used-car industry,” said President and CEO Bill Nash in the earnings release.
CarMax stock was gaining 6.4% to $79.48 in premarket trading. Coming into Thursday’s session, shares have climbed 23% this year.
Write to Emily Dattilo at [email protected]
Read the full article here